1page outline of the presentation transnet organisational structure business overview of tnpa major...

1PAGE

Outline of the presentation

• Transnet organisational structure

• Business overview of TNPA

• Major investment and infrastructure plan

• Major investment

• Infrastructure plan

• Port Capacity

• Total TNPA

• Challenges facing productivity in our ports

• People

• Process

• Technology

• Superstructures

2PAGE

Transnet Organisational Structure

2

• 20 500 km of railway track

• 182 million tons of freight

• General freight and 2 heavy haul export lines

• Revenue R22.2 bn

• Assets R54.7bn

• 24 177 employees

• Support to TFR for rolling stock maintenance

• Revenue R9.8bn

• Assets R6.8bn• 13 020

employees

• 8 Commercial

ports

– Ngqura

became

operational

during October

2009

• Revenue R8.4bn

• Assets R56bn

• 3 558

employees

• 16 Cargo terminal operations across SA ports

• Revenue R6bn• Assets

R13.5bn• 5 895

employees

• 18 billion litresof petroleum products and gas through 3000km pipelines, mainly to Gauteng

• Revenue R1.3bn

• Assets R20.1bn

• 600 employees

• Transnet Capital Projects

• Transnet Property

• Transnet Foundation

3PAGE 33

The National Ports Authority is a landlord Port Authority that provides port infrastructure and maritime-related services at the South African ports. Key business parameters :

R 9.2 bn Total Revenue R 59.1 bn Total assets 8 operational ports – coastline approx. 2 800km 97 berths (18 container,21 dry bulk, 37 break-bulk,16

liquid bulk, 5 automotive 58 maritime craft (30 tugs, 9 pilot boats, 7 workboats,

3 pilot helicopters, 5 dredgers, 4 survey boats) 3 566 employees countrywideEight Operational Ports

Mossel Bay

Mossel Bay

Business overview

Core Business: Infrastructure – Capacity planning, Development,

Maintenance Marine Services – Pilotage, Tug and Berthing Services Dredging – Maintenance dredging and Hydro graphic

surveys Lighthouse Services – Provision of Aids to Navigation

Ports – key commodities: Durban – Containers, Autos and Liquid bulk Richards Bay – Coal Saldanha – Iron Ore Port Elizabeth – Containers and Autos Cape Town – Containers and Fruit East London – Autos Ngqura – Containers Mossel Bay – Liquid bulk

Core Business & Key Commodities

Lighthouses Infrastructure

Marine Services

Dredging

Four Core Business Activities

4PAGE

MAJOR INVESTMENTSMAJOR INVESTMENTS

5PAGE

Outline of the potential investments

• Durban International Airport Site

• Port of Ngqura

6PAGE 6PAGE

Current SiteOld Durban International Airport (DIA) long term potential

7PAGE

Prototype Port LayoutDIA site long term potential

8PAGE

Development Phasing and Costing(DIA)

Item No:

Project Description Dates Capacity Project Cost (R millions)

20 Year Planning Horizon

1 Airport West – Phase 1 2016-19 1.28 m TEU 5,231

2 Airport West - Phase 2 2018-21 1.28 m TEU 5,231

3 Airport West - Phase 3 2020-23 0.85 m TEU 3,103

4 Airport: Liquid-bulk – Phase 2 2016-21 10.0 m tons 138

5 Airport: Liquid-bulk – Phase 3 2019-24 10.0 m tons 138

6 Road and Rail 2021-26 - 1,087

SUB TOTAL 14,928

Typical Port Investment – (2017-2026)

9PAGE

PORT OF NGQURA

Future developments

• Relocation of the Manganese terminal from the Port of Port Elizabeth (PE) to Ngqura by 2015:

• Construction of a Manganese ore berth

• Relocation of the Tank farm from the Port of PE to Ngqura by 2015

• Construction of a Liquid Bulk berth

10PAGE

MAJOR INFRASTRUCTUREMAJOR INFRASTRUCTURE

11PAGE

Outline of the major infrastructure

• Port of Durban

• Entrance channel widening and deepening

• Port of Ngqura

• Dredging of the Channel

• Berth extensions

• Port of Cape Town

• Berth deepening

12PAGE

Durban Entrance Widening and Deepening during construction 2008

Total investment

• R3.0 Bn

Channel Depth from:

• 12.8m to 16.m

The width increased from

• 130m to 220m

During Construction

After Construction

13PAGE

NGQURA 2011

Current Operations

• Two container Berths

• Two MPT Berths

By end of May 2012

• Move from two to four container berths

Current Layout

Immediate Future

14PAGE

CAPE TOWN

Current Operations

• Four container Berths

12.8 m draft

• Two MPT Berths

11.2m draft

By end of November 2012

• Move to four container berths

14.2m draft

Current Layout

Immediate Future

15PAGE

PORT CAPACITYPORT CAPACITY

24PAGE

Port Capacity

TOTAL TNPA Theoretical capacity

Containers (TEUs) 4 893 000    Break Bulk 25 311 000    Bulk Liquid (incl. SBM) 71 271 600 SBM &SPM (Incl. in Bulk Liquid above) 32 971 600    Total Dry Bulk   - Coal 92 750 000 - Iron ore 58 000 000 - Manganese (incl Ngqura) 7 550 000 - Other bulk 31 900 000    Automotive (cars- units) 655 000    

25PAGE

CHALLENGES FACING CHALLENGES FACING

PRODUCTIVITY IN OUR PORTSPRODUCTIVITY IN OUR PORTS

26PAGE

Outline of the challenges facing productivity in our ports

• People

• Shortage of critical skills

• Aging workforce

• Processes

• Manual processes

• Lack of uniform productivity measures

• Superstructure

• Aging tug fleet

• Aging cranes

27PAGE

External Challenges

• Economic regulation

• Introduction of the National Ports Act of 2005 brought new challenges to the Authority,

i.e.

• tariff determinations

• Increase in legal matters

• Revenue uncertainty

28PAGE

Maritime Port Security Challenges

• Recognized Maritime/Port Security Threats

• Lack of a collaborative maritime security strategy

• Piracy

• Maritime Terrorism

• Contraband Smuggling/Trafficking

• Incidence of Stowaways

• Insufficient coastal protection capacity

• Lack of ‘deep water’ patrol capacity

• Incidence of Trespassing

• Illegal exploitation of natural resources, e.g. poaching abalone, fish

• Prohibited imports/exports

• Potential Marine pollution

29PAGE

THANK YOU